Condo Living: 4 Tips for Buying the Condo of Your Dreams
If you have your eye on snatching up a condo, you probably know that housing prices in the US have been hitting record highs. This makes entering the property market tricky at best. Combined with predictions of a price crash, you need to be careful about what condo you invest in.
Otherwise, the condo of your dreams could easily turn into the property of your nightmares.
Fortunately, there are a few tried and trusted tips for buying a condo. Ones which will ensure that you not only make a good investment—but snag your dream pad. Read on to find out what these are.
1. If You Can’t Put Down 20%, Look for FHA Approved Condos
One of the first considerations for anybody eyeing up property is usually financing.
If you are a first-time condo buyer, then you might not be aware that mortgages for these are not as straightforward as for other property types. Not only will your financial footing be analyzed, but the condominium property itself.
Additionally, with traditional mortgages, you will need to put forward the standard 20% down payment. If this is not feasible, you can apply for a Federal Housing Administration (FHA) loan.
These are administered by the government and need down payments of as little as 3.5 percent. However, to qualify, you will need to select a condo that is FHA approved
2. Get Clear on Association Fees and Special Assessments
When looking at condos, you will also need to budget for association fees. This way you will be able to forecast whether you can afford these on top of your monthly mortgage.
When inquiring about fees, be sure to clarify what is included, and weigh up whether these services are worth the money.
Additionally, ask about any potential special assessments. Special assessments are the funds that condo property associations draw on when implementing upgrades or projects on the property. In some cases, associations will raise the fees from residents to boost available funds for these projects, by upping association fees for a period.
Therefore—for the health of your budget—it is important to inquire if any special assessments are in the pipeline.
Well run associations will generally avoid special assessments, except in emergencies or extraordinary situations.
3. Know the Rules
Different condo buildings have different rules. knowing what these are before you close on your condo is super important. Nobody wants to buy a beautiful condo, only to find out that their dog is not allowed! Or that you will be fined if your Christmas decorations aren’t down by the 30th (true story).
4. Compare Real Estate Agents in Your Area
As with any property purchase, it is important that you work with a trustworthy and experienced real estate agent.
One of the easiest ways to find a top-performing estate agent is to use a comparison tool to compare realtors in your area. Take it from us, marketers can lie, data doesn’t.
Buying a Condo of You Dreams Was Never Easier With These Tips
Buying a condo is both an exciting and nerve-wracking undertaking! However, with these tips, buying the condo of your dreams is going to be that much more straightforward.
Enjoy your condo shopping, and be sure to share this post. Bookmark our site for more helpful reads and we’ll see you soon!
